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2020 Regular Session
SENATE BILL NO. 157
BY SENATOR WOMACK
FISCAL CONTROLS. Provides relative to audit requirements for recipients of state funds.
(7/1/20)
1 AN ACT
2 To amend and reenact R.S. 39:72.1(A), and to enact R.S. 39:72.1(D), relative to certain
3 appropriations; to provide authorization for the payment of outstanding contracts in
4 certain circumstances; to provide relative to the audit requirements for the recipients
5 of certain state funds; to provide for an effective date; and to provide for related
6 matters.
7 Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 39:72.1(A) is hereby amended and reenacted, and R.S. 39:72.1(D)
9 is hereby enacted to read as follows:
10 ยง72.1. Compliance with audit requirements
11 A.(1) Notwithstanding any contrary provision of law, no funds appropriated
12 directly or indirectly in the general appropriations act, the capital outlay act, or
13 other appropriation act, or awarded from the Louisiana Department of Health
14 Drinking Water Revolving Loan Fund, the Louisiana Department of
15 Environmental Quality Municipal Facilities Revolving Loan Fund, or from
16 Office of Community Development programs for Community Development
17 Block Grants, Louisiana Community Development Block Grants, Local
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 157
SLS 20RS-342 ENGROSSED
1 Government Assistance Program, Disaster Recovery grants, the Community
2 Water Enrichment Fund, or similar programs, shall be released or provided to
3 any recipient of an appropriation if, when, and for as long as, the recipient fails or
4 refuses to comply with the provisions of R.S. 24:513.
5 (2) No public entity that has failed or refused to comply with the provisions
6 of R.S. 24:513 shall let any contract, including a public contract, that utilizes any
7 state funds, whether received through direct appropriation, or through transfer or
8 grant from another public entity, or whose funding relies upon the full faith and
9 credit of the state. For the purposes of this Paragraph, the terms "public entity" and
10 "public contract" shall be defined as in R.S. 38:2211(A), and the term "state funds"
11 shall also include any federal funds, including grants, that pass through the state. For
12 the purposes of this Section, the term "public entity" shall include a local
13 auditee as defined in R.S. 24:513.
14 * * *
15 D. Notwithstanding any provision of law to the contrary, if the public
16 entity is in compliance with R.S. 24:513 at the time the public entity enters into
17 a public contract related to public health, welfare, or safety, and later becomes
18 noncompliant with the provisions of R.S. 24:513, the legislative auditor may
19 grant the public entity an extension of time under R.S. 24:513 in order that the
20 public entity may receive appropriated or awarded state funds and shall tender
21 outstanding payments to contractors, subcontractors, suppliers, and others due
22 payment by the public entity related solely to contracts that will inure to the
23 benefit of public health, welfare, or safety. The public entity shall abide by any
24 conditions imposed by the legislative auditor to monitor the proper payment of
25 funds due to contractors, subcontractors, suppliers, and others.
26 Section 2. This Act shall become effective on July 1, 2020. If vetoed by the governor
27 and subsequently approved by the legislature, this Act shall become effective on July 1,
28 2020.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 157
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Martha S. Hess.
DIGEST
SB 157 Engrossed 2020 Regular Session Womack
Present law provides that no funds appropriated in the general appropriations act, the capital
outlay act, or other appropriation act, shall be released or provided to any recipient of an
appropriation if, when, and for as long as, the recipient fails or refuses to comply with the
provisions of present law regarding audit requirements.
Proposed law retains present law and provides that the funds may be appropriated directly
or indirectly and that the source of funds may also be an award from the La. Dept. of Health
Drinking Water Revolving Loan Fund, the La. Dept. of Environmental Quality Municipal
Facilities Revolving Loan Fund, or Office of Community Development programs for
Community Development Block Grants, Louisiana Community Development Block Grants,
Local Government Assistance Program, Disaster Recovery grants, or the Community Water
Enrichment Fund or similar programs.
Present law provides that any public entity that has failed or refused to comply with the
provisions of the audit laws shall not let any public contract that utilizes any state funds. For
the purposes of present law, the terms "public entity" and "public contract" shall be defined
as in the present law regarding public contracts.
Proposed law retains present law but further provides that the term "public entity" shall
include a local auditee as defined in present law.
Present law prohibits public entities not in compliance with law from letting any public
contract that utilizes any state funds. Further provides that a public entity subject to present
law may only be released from such restrictions after the following actions have been
performed:
(1)The public entity notifies the Legislative Audit Advisory Council, in writing, of their
compliance.
(2)The Legislative Audit Advisory Council confirms that the public entity is in
compliance.
Proposed law retains present law.
Proposed law provides that if the public entity is in compliance with present law regarding
audits at the time the public entity enters into a public contract related to public health,
welfare, or safety, and later becomes noncompliant with those provisions, the legislative
auditor may grant the public entity an extension of time in order that the public entity may
receive appropriated or awarded State funds and shall tender the outstanding payments to
contractors, subcontractors, suppliers, and others due payment by the public entity. Further
provides that the public entity shall abide by any conditions imposed by the legislative
auditor to monitor the proper payment of funds due to contractors, subcontractors, suppliers,
and others.
Effective July 1, 2020.
(Amends R.S. 39:72.1(A); adds R.S. 39:72.1(D))
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 157
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Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the original
bill
1. Provides that the legislative auditor may grant the public entity an extension
of time to submit an audit if the public contract is related to the public health,
welfare, or safety.
2. Provides that if given an extension of time to submit an audit, the public
entity may receive state funds and shall tender outstanding payments to
contractors, subcontractors, suppliers, and others.
3. If given an extension of time to submit an audit, the public entity shall abide
by any conditions imposed by the legislative auditor to monitor the proper
payment of funds due to contractors, subcontractors, suppliers, and others.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.